As in any business it is important to focus your attention on what the customer wants. All successful businesses have figured out what is of value to their customers. It's no different in a home-based woodworking business. If you are going to be successful, you can't be all things to all people. You have to narrow your focus, in other words you have to find your niche in the marketplace. doing this is difficult but not impossible.
Now if you are a large company or have a lot of money backing your venture you can hire a firm to do this for you. Lets face it though. If you are just getting started in a home based woodworking business you more than likely don't have a bucket full of cash around to hire a firm to do this for you. So this is something you are going to have to research on your own, and there are a number of ways to do that.
One of the first and I think the most important is to see what the competition is doing. You can talk to other pen the woodworking business and some will be more than happy to give you advise. Normally these are entrepreneurs who are self-confident and successful and want to give a new guy a hand up and feel that quality competition is good for the industry overall. Then there are the others that keep everything close to the vest, and even then if you ask the right questions you can gain valuable information.
Go to craft shows not just one but as many as you can go to there are always two or three woodworking business represented at each one. Plan on spending the entire day at as many craft shows as you can, I suggest different craft shows because different shows attract different kinds of woodworking businesses. Keep your eyes and ears open, watch for which items seem to sell the best at each type of show. Look for the woodworking business that sells more than the rest and which of his woodworking projects are the most popular. This will give you a lot of insight to the local market, it makes no sense to waste your time and money making woodworking projects that just won't sell in your area.
We all know how valuable the Internet has become in doing research and when it comes to other parts of your new woodworking business it will turn out to be very valuable, but when it comes to finding the niche for your small woodworking business it just doesn ' t work like the boots on the ground methods we have discussed.
Picking a niche allows you to focus your efforts and to keep your eye on the prize, and the prize here is to pick the right woodworking projects that lead to a profitable woodworking business.
Now that you have your niche is when the internet does become important, you want to build a website aimed at your product line and build your SEO (search engine optimization) which is critical because it will drive traffic to your site which will convert to sales .
Picking your niche is very important ans is just another key component in planning your woodworking enterprise. Proper planning increases your chances to be successful.